Senate File 2052 - Introduced SENATE FILE 2052 BY WILHELM A BILL FOR An Act authorizing the creation of county improvement 1 districts, authorizing the imposition, collection, and 2 expenditure of certain tax revenue within a district, 3 authorizing the issuance of bonds for a district, and 4 including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5106XS (13) 85 md/sc
S.F. 2052 Section 1. NEW SECTION . 332.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Board” means the county board of supervisors. 4 2. “Book” , “list” , “record” , or “schedule” kept by a county 5 auditor, assessor, treasurer, recorder, sheriff, or other 6 county officer means the county system as defined in section 7 445.1. 8 3. “Costs” of an improvement includes construction contracts 9 and the cost of engineering, architectural, technical, and 10 legal services, preliminary reports, property valuations, 11 estimates, plans, specifications, notices, acquisition 12 of real and personal property, consequential damages or 13 costs, easements, rights-of-way, supervision, inspection, 14 testing, publications, printing and sale of bonds, interest 15 incurred during construction and for not more than six months 16 thereafter, and provisions for contingencies. 17 4. “District” means a county improvement district created in 18 accordance with this chapter. 19 5. “Improvement” means works, structures, and facilities 20 located within or outside the district that are necessary 21 to provide utility services to property within the 22 district, including but not limited to water, electric, gas, 23 telecommunications, and sewer utilities. 24 6. “New consumer” means a consumer, as defined in section 25 437A.3, located in the district that was not located in the 26 area of the district before the effective date of the ordinance 27 establishing the district, regardless of ownership. 28 7. “Property” means real property as defined in section 4.1, 29 subsection 13, and in section 427A.1, subsection 1, paragraph 30 “h” . 31 8. “Property owner” or “owner” means the owner of property, 32 as shown by the transfer books in the office of the county 33 auditor of the county in which the property is located. 34 Sec. 2. NEW SECTION . 332.2 Authorization. 35 -1- LSB 5106XS (13) 85 md/sc 1/ 18
S.F. 2052 A county that proposes to create a county improvement 1 district, to provide for its existence and operation, to 2 provide for improvements, to authorize and issue bonds for the 3 purposes of the district, and to use the taxes authorized by 4 this chapter must do so in accordance with the provisions of 5 this chapter. 6 Sec. 3. NEW SECTION . 332.3 Creation of district. 7 1. A county improvement district created by the board of 8 supervisors shall: 9 a. Be comprised of contiguous property wholly within the 10 unincorporated area of the county. 11 b. Be comprised only of property that is zoned for 12 commercial or industrial use. 13 c. Be given a descriptive name containing the words “county 14 improvement district”. 15 d. Be comprised of property related in some manner, 16 including but not limited to present or potential use, physical 17 location, condition, relationship to an area, or relationship 18 to present or potential commercial or industrial activity in an 19 area, so as to be benefited in any manner. 20 2. The board shall initiate proceedings for creating a 21 district upon the filing with the county auditor of a petition 22 containing: 23 a. The signatures of at least fifty percent of all owners of 24 property within the proposed district. These signatures must 25 together represent ownership of property with an assessed value 26 of fifty percent or more of the assessed value of all of the 27 property in the proposed district. 28 b. A description of the boundaries of the proposed district 29 or a description of the property within the proposed district. 30 c. The name of the proposed district. 31 d. A statement of the maximum rate of tax that may be 32 imposed upon property within the proposed district for purposes 33 of the district. The maximum rate of tax may be stated in terms 34 of separate maximum rates for the debt service tax and the 35 -2- LSB 5106XS (13) 85 md/sc 2/ 18
S.F. 2052 capital improvement fund tax, or in terms of a maximum combined 1 rate for both. 2 e. The purpose of the district, which may be stated 3 generally, or in terms of the relationship of the property 4 within the district or the interests of the owners of property 5 within the district, or in terms of the improvements proposed 6 for the district by listing specific improvements or general 7 categories of improvements, or in terms of any combination of 8 the foregoing. 9 f. A statement as to whether the district is authorized to 10 use utility replacement tax revenue pursuant to section 332.7. 11 3. a. The board shall notify the county zoning commission 12 upon the receipt of a petition. It shall be the duty of 13 the county zoning commission to make recommendations to the 14 board in regard to the proposed district. The county zoning 15 commission shall, with due diligence, prepare a report for the 16 board evaluating the merit and feasibility of the proposed 17 district. Except as otherwise provided in paragraph “b” , the 18 board shall not hold a public hearing or take further action on 19 the creation of the district until it has received the report 20 required by this section. 21 b. If no county zoning commission exists, the board shall 22 notify the metropolitan or regional planning commission upon 23 receipt of a petition, and such commission shall have the 24 same duties set forth in this subsection as a county zoning 25 commission. If no county zoning commission or metropolitan 26 or regional planning commission exists, the board shall call 27 a public hearing on the petition requesting creation of a 28 district by publishing and mailing notice in the same manner as 29 provided in subsection 4. 30 4. a. Upon receipt of the commission’s final report or 31 after the public hearing under subsection 3, paragraph “b” , as 32 applicable, the board shall set a time and place for a public 33 hearing at which the board proposes to take action on creation 34 of the district, and shall publish notice of the hearing as 35 -3- LSB 5106XS (13) 85 md/sc 3/ 18
S.F. 2052 provided in section 331.305. In addition, the county auditor 1 shall send a copy of the notice by certified mail not less 2 than fifteen days before the hearing to each owner of property 3 within the proposed district at the owner’s address as shown by 4 the records of the county auditor. If a property is shown to be 5 in the name of more than one owner at the same mailing address, 6 a single notice may be mailed addressed to all owners at that 7 address. Failure to receive a mailed notice is not grounds for 8 objection to the board’s taking any action authorized in this 9 chapter. 10 b. In addition to the time and place of the public hearing 11 on the proposal, the notice must state: 12 (1) That a petition has been filed with the board asking 13 that a district be established. 14 (2) The name of the district. 15 (3) The purpose of the district. 16 (4) A description of the property proposed to be included in 17 the district and a map of such property. 18 (5) A description of any proposed improvement to be 19 undertaken and an estimate of its cost. 20 (6) The funding sources proposed for each improvement 21 identified under subparagraph (5), and an estimate of the 22 amount of funding that will be necessary from each funding 23 source. 24 5. At the time and place set in the notice the board 25 shall hear all owners of property in the proposed district or 26 residents of the county desiring to express their views. The 27 board must wait at least thirty days after the public hearing 28 required by subsection 4 has been held before it may adopt 29 an ordinance establishing a district. Property included in 30 the proposed district need not be included in the established 31 district. However, property shall not be included in the 32 established district if the property was not included in the 33 proposed district unless the board holds another public hearing 34 after publishing and mailing notice meeting the requirements of 35 -4- LSB 5106XS (13) 85 md/sc 4/ 18
S.F. 2052 subsection 4 to the owners of the additional property or causes 1 a notice of the inclusion of the property to be personally 2 served upon each owner of the additional property or receives 3 a written waiver of notice from each owner of the additional 4 property. 5 6. Adoption of the ordinance creating a district requires 6 the affirmative vote of three-fourths of all of the members 7 of the board. However, adoption of the ordinance requires a 8 unanimous vote of the board if a remonstrance has been filed 9 with the county auditor signed by at least fifty percent of all 10 owners of property within the proposed district representing 11 ownership of property with an assessed value of fifty percent 12 or more of the assessed value of all of the property in the 13 proposed district. 14 7. The county auditor shall cause a copy of the ordinance to 15 be filed in the office of the county recorder and shall provide 16 a copy of the ordinance to the director of revenue and the 17 director of the department of management within fifteen days 18 of adoption. 19 8. At any time prior to adoption of an ordinance creating 20 a district, the matter of creating such district shall be 21 withdrawn from board consideration if a petition objecting 22 to creating such district is filed with the county auditor 23 containing the signatures of at least sixty-five percent of all 24 owners of property within the proposed district or signatures 25 which together represent ownership of property with an assessed 26 value of sixty-five percent or more of the assessed value of 27 all property within the proposed district. 28 9. The adoption of an ordinance creating a district is a 29 legislative determination that the property within the district 30 is related in some manner as required under subsection 1, 31 paragraph “d” . 32 10. Any resident or property owner of the county may appeal 33 the action and the decisions of the board, including the 34 creation of the district, to the district court of the county 35 -5- LSB 5106XS (13) 85 md/sc 5/ 18
S.F. 2052 in which the district is located, within thirty days after 1 the date upon which the ordinance creating the district takes 2 effect, but the action and decision of the board are final 3 and conclusive unless the court finds that the board exceeded 4 its authority. An action may not be brought questioning the 5 regularity of the proceedings pertaining to the creation of 6 a district or the validity of the district, or the propriety 7 of the inclusion or exclusion of any property within or from 8 the district, or the ability of the county to receive taxes 9 in accordance with the ordinance creating the district, after 10 thirty days from the date on which the ordinance creating the 11 district takes effect. 12 11. The procedural steps for the petitioning and creation 13 of the district may be combined with the procedural steps for 14 the authorization of any improvement under section 332.6, or 15 the procedural steps for the authorization of any tax, or any 16 combination thereof. 17 12. The rate of debt service tax referred to in the 18 petition and the ordinance creating the district shall only 19 restrict the amount of bonds which may be issued, and shall 20 not limit the ability of the county to levy as necessary in 21 subsequent years to pay interest and amortize the principal 22 of that amount of bonds. Bonds issued pursuant to section 23 332.10 shall constitute indebtedness within the meaning of any 24 constitutional or statutory debt limitations or restrictions. 25 13. The ordinance creating the district may provide for 26 the division of all of the property within the district into 27 two or more zones based upon a reasonable difference in the 28 relationship of the property or the interest of its owners, 29 whether the difference is qualitative or quantitative. The 30 ordinance creating the district and establishing the zones 31 may establish a different maximum rate of tax for each zone, 32 or may provide that the zone shall be credited with a certain 33 set percentage of the improvement district taxes levied in the 34 zone. 35 -6- LSB 5106XS (13) 85 md/sc 6/ 18
S.F. 2052 Sec. 4. NEW SECTION . 332.4 Amendments to ordinance. 1 1. a. The ordinance creating the district may be amended 2 by the board. 3 b. If the amendment to the ordinance modifies the boundaries 4 of the district, increases or decreases the maximum rate 5 of taxes authorized in the ordinance, or authorizes or 6 discontinues the use of utility replacement taxes under section 7 332.7, such amendment shall be adopted in the same manner and 8 by the same procedure as for the creation of a district. 9 c. Property added to a district shall be subject to all 10 taxes currently and thereafter levied, including debt service 11 levies for bonds previously or thereafter issued. 12 2. An amendment to the ordinance creating the district for 13 any reason specified under subsection 1, paragraph “b” , shall 14 be adopted by an affirmative vote of three-fourths of all of 15 the members of the board. However, if a remonstrance has been 16 filed with the county auditor signed by at least fifty percent 17 of all owners of property within the district, and all property 18 proposed to be included if applicable, representing ownership 19 of property with an assessed value of fifty percent or more of 20 the assessed value of all the property in the district, and all 21 property proposed to be included if applicable, the amendment 22 to the ordinance must be adopted by unanimous vote of the 23 board. 24 3. The county auditor shall cause a copy of the amended 25 ordinance to be filed in the office of the county recorder and 26 shall provide a copy of the amended ordinance to the director 27 of revenue and the director of the department of management. 28 4. At any time prior to adoption of the amendment to the 29 ordinance creating the district, the entire matter of amending 30 the ordinance shall be withdrawn from board consideration 31 if a petition objecting to amending the ordinance is filed 32 with the county auditor containing either the signatures of 33 at least sixty-five percent of all owners of property within 34 the district, and all property proposed to be included if 35 -7- LSB 5106XS (13) 85 md/sc 7/ 18
S.F. 2052 applicable, or signatures that together represent ownership of 1 property with an assessed value of sixty-five percent or more 2 of the assessed value of all property within the district, and 3 all property proposed to be included if applicable. 4 5. Any resident or property owner of the county may appeal 5 the action or decisions of the board in amending the ordinance 6 creating the district to the district court of the county in 7 which the district is located, within fifteen days after the 8 date upon which the amendment to the ordinance creating the 9 district takes effect, but the action and decision of the board 10 are final and conclusive unless the court finds that the board 11 exceeded its authority. An action questioning the regularity 12 of the proceedings pertaining to the amended ordinance or the 13 validity of the district as amended, or the propriety of the 14 inclusion or exclusion of any property within or from the 15 amended district, or the ability of the county to impose or 16 receive taxes in accordance with the ordinance establishing 17 the district, as amended, may not be brought after thirty days 18 from the date upon which the amendment to the ordinance takes 19 effect. 20 Sec. 5. NEW SECTION . 332.5 Dissolution. 21 1. A district may be dissolved and terminated by action of 22 the board repealing the ordinance creating the district, and 23 any subsequent amendments to the ordinance, by an affirmative 24 vote of three-fourths of all members of the board. However, if 25 a remonstrance has been filed with the county auditor signed 26 by at least fifty percent of all owners of property within the 27 district representing ownership of property with an assessed 28 value of fifty percent or more of the assessed value of all the 29 property in the district, the repeal of the ordinance creating 30 the district, and any subsequent amendments to the ordinance, 31 requires a unanimous vote of the board. 32 2. At any time prior to action of the board repealing the 33 ordinance creating the district, and any subsequent amendments 34 to the ordinance, the matter of dissolving a district shall 35 -8- LSB 5106XS (13) 85 md/sc 8/ 18
S.F. 2052 be withdrawn from board consideration if a petition is filed 1 with the county auditor containing the signatures of at 2 least sixty-five percent of all owners of property within the 3 district or signatures which together represent ownership of 4 property with an assessed value of sixty-five percent or more 5 of the assessed value of all property within the district. 6 3. A dissolution of a district shall not become effective 7 until the indebtedness or other obligations of the district 8 have been satisfied. 9 Sec. 6. NEW SECTION . 332.6 Improvements. 10 1. When a county proposes to construct an improvement the 11 costs of which are to be paid or financed under the provisions 12 of this chapter, it must do so in accordance with this section. 13 2. The board shall initiate proceedings for a proposed 14 improvement upon receipt of a petition signed by at least 15 fifty percent of all owners of property within the district 16 representing ownership of property with an assessed value of 17 fifty percent or more of the assessed value of all the property 18 in the district. 19 3. Upon receipt of such a petition the board shall 20 notify the county zoning commission, if one exists, or the 21 metropolitan or regional planning commission, if one exists, 22 in the order set forth in section 332.3, subsection 3. Upon 23 notification by the board, the commission shall prepare a 24 report for the board evaluating the merit and feasibility of 25 the improvement and shall carry out all other duties as set 26 forth in section 332.3, subsection 3. If no planning or zoning 27 commission exists, the board shall call a public hearing on the 28 proposed improvement by publishing and mailing notice in the 29 same manner as provided in section 332.3, subsection 4. 30 4. a. Upon receipt of the commission’s report or after the 31 public hearing under subsection 3, as applicable, the board 32 shall set a time and place of a public hearing at which the 33 board proposes to take action on the proposed improvement and 34 shall publish and mail notice in the same manner as provided 35 -9- LSB 5106XS (13) 85 md/sc 9/ 18
S.F. 2052 in section 332.3, subsection 4. 1 b. The notice must include the time and place of the hearing 2 and a statement that an improvement has been proposed, the 3 nature of the improvement, and the funding source for the costs 4 of the improvement. 5 5. At the time and place set in the notice the board shall 6 hear all owners of property in the district or residents of 7 the county desiring to express their views. The board must 8 wait at least thirty days after the public hearing required by 9 subsection 4 has been held before it may take action to order 10 construction of the improvement. The provisions of section 11 332.3, subsections 6 and 8, relating to the adoption of the 12 ordinance creating a district, the requisite vote therefor, the 13 remonstrance thereto, and the withdrawal of the matter from 14 board consideration apply to the adoption of the resolution 15 ordering the construction of the improvement. 16 6. If the board adopts a resolution ordering the 17 construction of the improvement, it shall proceed to let 18 contracts for the improvement in accordance with chapter 26. 19 7. The adoption of a resolution ordering the construction of 20 an improvement is a legislative determination that the proposed 21 improvement is in furtherance of the purposes of the district 22 and that all property in the district will be affected by the 23 construction of the improvement, or that all owners of property 24 in the district have an interest in the construction of the 25 improvement. 26 8. Any resident or property owner of the county may 27 appeal the action or decisions of the board in ordering the 28 construction of the improvement to the district court of the 29 county in which the district is located within thirty days 30 after the adoption of the resolution ordering construction of 31 the improvement, but the action and decisions of the board are 32 final and conclusive unless the court finds that the board 33 exceeded its authority. No action may be brought questioning 34 the regularity of the proceedings pertaining to the ordering of 35 -10- LSB 5106XS (13) 85 md/sc 10/ 18
S.F. 2052 the construction of an improvement or the right of the county 1 to apply moneys in the capital improvement fund established in 2 section 332.8 to the payment of the costs of the improvement 3 or the right of the county to issue bonds authorized in this 4 chapter for the payment of the costs of the improvement or the 5 right of the county to levy taxes which with any other taxes 6 authorized by this chapter do not exceed the maximum rate of 7 tax that may be imposed upon property within the district for 8 the payment of principal of and interest on bonds issued to 9 pay the costs of the improvement, after thirty days from the 10 date of adoption of the resolution ordering construction of the 11 improvement. 12 Sec. 7. NEW SECTION . 332.7 Utility replacement tax. 13 1. If authorized by the ordinance creating the district, 14 or any subsequent amendment to such ordinance, the county may 15 elect to receive each year for a period not to exceed twenty 16 years following initial creation of the district an amount of 17 replacement taxes collected under chapter 437A not to exceed 18 the sum of the following: 19 a. The number of taxable kilowatt-hours of electricity 20 delivered to new consumers within the district for consumption 21 within the district during the tax year multiplied by the 22 electric replacement delivery tax rate in effect for the 23 applicable electric competitive service area. 24 b. The number of taxable therms of natural gas delivered 25 to new consumers within the district for consumption within 26 the district during the tax year multiplied by the natural gas 27 delivery tax rate in effect for the applicable natural gas 28 competitive service area. 29 2. Replacement taxes received by a county under this section 30 shall be deposited in the improvement district’s capital 31 improvement fund established under section 332.8 or in the 32 improvement district’s debt service fund established under 33 section 332.9. 34 Sec. 8. NEW SECTION . 332.8 Capital improvement tax and 35 -11- LSB 5106XS (13) 85 md/sc 11/ 18
S.F. 2052 fund. 1 1. A county may establish a capital improvement fund 2 for a district and may certify taxes not to exceed the rate 3 established by the ordinance creating the district, or any 4 subsequent amendment thereto, such taxes to be levied each year 5 for the fund against all of the property in the district for 6 the purpose of accumulating moneys for the financing or payment 7 of a part or all of the costs of any improvement. A tax levied 8 under this section is not a basic levy for purposes of the levy 9 limitations in section 331.423. 10 2. In addition to taxes levied and collected under 11 subsection 1, all or a portion of the replacement tax revenue 12 received by the district under section 332.7 may be deposited 13 in the capital improvement fund and used for the purposes 14 authorized under subsection 1. The tax authorized under 15 subsection 1 is not required to be levied and collected in 16 order to establish a capital improvement fund and to deposit 17 replacement tax revenue into the fund. 18 Sec. 9. NEW SECTION . 332.9 Debt service tax and fund. 19 1. A county shall establish an improvement district debt 20 service fund if county improvement district bonds are issued 21 and outstanding, other than revenue bonds, and shall certify 22 taxes to be levied against all of the property in the district 23 for the improvement district debt service fund in the amount 24 necessary to pay interest as it becomes due and the amount 25 necessary to pay, or to create a sinking fund to pay, the 26 principal at maturity of all county improvement district bonds 27 issued by the county as authorized in section 332.10. 28 2. In addition to taxes levied and collected under 29 subsection 1, all or a portion of the replacement tax revenue 30 received by the district under section 332.7 may be deposited 31 in the improvement district debt service fund and used for 32 the purposes authorized under subsection 1 in lieu of all or 33 a portion of the tax required to be levied under subsection 34 1. The tax authorized under subsection 1 is not required to 35 -12- LSB 5106XS (13) 85 md/sc 12/ 18
S.F. 2052 be levied and collected in order to establish an improvement 1 district debt service fund and to deposit replacement tax 2 revenue into the fund. 3 Sec. 10. NEW SECTION . 332.10 County improvement district 4 bonds. 5 1. A county may issue county improvement district bonds at 6 public or private sale payable from taxes levied in accordance 7 with chapter 76. The bonds are payable from the levy of 8 unlimited ad valorem taxes on all the taxable property within 9 the district through the improvement district debt service fund 10 authorized by section 332.9 and from replacement tax revenue 11 received under section 332.7 and deposited into the improvement 12 district debt service fund. When county improvement district 13 bonds are issued and taxes are levied, the taxes shall continue 14 to be levied, until the principal and interest on the bonds 15 are paid in full, against all of the taxable property that was 16 included in the district at the time of the issuance of the 17 bonds and against property added to the district by amendment 18 to the ordinance, and regardless of any subsequent removal of 19 property from the district or the dissolution of the district. 20 2. The proceeds of the sale of the bonds may be used to 21 pay the costs of an improvement or may be used to pay any 22 legal indebtedness incurred for the costs of an improvement, 23 including bonds or warrants previously issued to pay the costs 24 of an improvement, or bonds may be exchanged for the evidences 25 of such legal indebtedness. 26 3. Before the board may institute proceedings for the 27 issuance of bonds, it shall proceed in the same manner as 28 is required for instituting proceedings for the issuance of 29 bonds for an essential county purpose as provided in section 30 331.443 and all of the provisions of chapter 331 relating to 31 the issuance of essential county purpose bonds shall apply to 32 bonds issued pursuant to this section. 33 4. The proceeds of a single bond issue may be used for more 34 than one improvement. 35 -13- LSB 5106XS (13) 85 md/sc 13/ 18
S.F. 2052 5. The provisions of section 331.446 apply to bonds issued 1 pursuant to this section, except that the bonds shall be 2 designated “county improvement district bonds”. 3 6. An action questioning the legality of bonds issued 4 pursuant to this section or the power of a county to issue the 5 bonds or the effectiveness of any proceedings relating to the 6 authorization and issuance of the bonds shall not be brought 7 after thirty days from the time the bonds are ordered issued 8 by the county. 9 Sec. 11. NEW SECTION . 332.11 Payment for improvements. 10 The costs of improvements may be paid from any of the 11 following funding sources or a combination thereof: 12 1. The capital improvement fund established in section 13 332.8. 14 2. The proceeds of bonds issued pursuant to section 332.10. 15 3. Any other funds of the county that are legally available 16 to pay all or a portion of the costs of an improvement. The 17 fact that an improvement is initiated under this chapter 18 shall not preclude the county from paying the costs of the 19 improvement from any fund from which it might otherwise 20 have been able to pay such costs. In addition, and not in 21 limitation of the foregoing, an improvement that constitutes 22 an essential county purpose or a general county purpose, as 23 defined in section 331.441, may be financed in whole or in part 24 with the proceeds of the issuance of general obligation bonds 25 of the county payable from the debt service fund in section 26 331.430. 27 4. Payment for the costs of an improvement may also be 28 made in warrants drawn on any fund from which payment for 29 the improvement may be made. If such funds are depleted, 30 anticipatory warrants may be issued bearing a rate of interest 31 not exceeding that permitted by chapter 74A, which do not 32 constitute a violation of section 331.477, even if the 33 collection of taxes or income from the sale of bonds applicable 34 to the improvement is after the end of the fiscal year in 35 -14- LSB 5106XS (13) 85 md/sc 14/ 18
S.F. 2052 which the warrants are issued. If the county arranges for the 1 private sale of anticipatory warrants, they may be sold and 2 the proceeds used to pay the costs of the improvement. Such 3 warrants may be used to pay other persons furnishing services 4 constituting a part of the costs of the improvement. 5 Sec. 12. NEW SECTION . 332.12 Independent provisions. 6 The provisions of this chapter with respect to notice, 7 hearing, and appeal for the construction of improvements 8 and for the issuance and sale of bonds are in lieu of the 9 provisions contained in chapters 73A and 75, or any other law, 10 unless specifically referred to and made applicable by this 11 chapter. 12 Sec. 13. Section 437A.8, subsection 1, Code 2014, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . g. All information determined by the 15 director to be necessary to implement the allocation and 16 payment of replacement taxes to a county improvement district 17 that has authorized the use of such revenue pursuant to section 18 332.7. 19 Sec. 14. Section 437A.15, subsection 3, paragraph a, 20 subparagraph (1), Code 2014, is amended to read as follows: 21 (1) All replacement taxes owed by a taxpayer shall be 22 allocated among the local taxing districts in which such 23 taxpayer’s property is located in accordance with a general 24 allocation formula determined by the department of management 25 on the basis of general property tax equivalents. General 26 property tax equivalents shall be determined by applying the 27 levy rates reported by each local taxing district to the 28 department of management on or before June 30 following a 29 tax year to the taxable value of taxpayer property allocated 30 to each such local taxing district as adjusted and reported 31 to the department of management in such tax year by the 32 director pursuant to section 437A.19, subsection 2 . The 33 general allocation formula for a tax year shall allocate to 34 each local taxing district that portion of the replacement 35 -15- LSB 5106XS (13) 85 md/sc 15/ 18
S.F. 2052 taxes owed by each taxpayer which bears the same ratio as such 1 taxpayer’s general property tax equivalents for each local 2 taxing district bears to such taxpayer’s total general property 3 tax equivalents for all local taxing districts in Iowa. For 4 tax years beginning on or after January 1, 2015, the amount of 5 replacement taxes allocated by the department of management 6 under this section and paid to local taxing districts located 7 in whole or in part within a county improvement district 8 created under chapter 332 shall be adjusted to take into 9 account the use of replacement taxes under section 332.7 by the 10 county improvement district. 11 Sec. 15. EFFECTIVE UPON ENACTMENT. This Act, being deemed 12 of immediate importance, takes effect upon enactment. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill authorizes the creation of county improvement 17 districts. 18 A county improvement district shall be comprised of 19 contiguous property wholly within the unincorporated area of 20 the county, be comprised only of property which is zoned for 21 commercial or industrial use, and be comprised of property 22 related in some manner, including but not limited to present 23 or potential use, physical location, condition, relationship 24 to an area, or relationship to present or potential commercial 25 or industrial activity in an area, so as to be benefited in any 26 manner. 27 The county board of supervisors shall initiate proceedings 28 for creating a district upon the filing with the county auditor 29 of a petition containing the signatures of at least 50 percent 30 of all owners of property within the proposed district if those 31 owners represent ownership of property with an assessed value 32 of 50 percent or more of the assessed value of all of the 33 property in the proposed district. The petition shall also 34 state the maximum rate of tax that may be imposed upon property 35 -16- LSB 5106XS (13) 85 md/sc 16/ 18
S.F. 2052 within the district for purposes of the district, state the 1 purpose of the district, and state whether the district is 2 authorized to use utility replacement tax revenue. 3 The board is required to notify and receive recommendations 4 from the county zoning commission or other applicable entities, 5 if existing, regarding the creation of the district. Upon the 6 receipt of the county zoning commission’s final report, if 7 applicable, or the completion of a public hearing if no such 8 commission exists, the board shall set a time and place for a 9 public hearing on creation of the district. Adoption of the 10 ordinance creating a district requires the affirmative vote of 11 three-fourths of all of the members of the board. However, if 12 a remonstrance has been filed with the county auditor signed 13 by at least 50 percent of all owners of property within the 14 proposed district representing ownership of property with an 15 assessed value of 50 percent or more of the assessed value of 16 all of the property in the proposed district, the adoption of 17 the ordinance requires a unanimous vote of the board. 18 The bill establishes procedures for objecting to the 19 creation of the district, for appealing the actions of 20 the board relating to the district, for dissolution of the 21 district, and for amending the ordinance creating the district. 22 The bill establishes the procedure and requirements for a 23 county when the county proposes to construct an improvement, 24 as defined in the bill. The procedure for approving the 25 construction of an improvement financed with tax revenue 26 authorized in the bill is similar to the approval process for 27 the creation of the district. The bill defines “improvement” 28 to mean works, structures, and facilities located within or 29 outside the district that are necessary to provide utility 30 services to property within the district, including but not 31 limited to water, electric, gas, telecommunications, and sewer 32 utilities. 33 The bill authorizes the county to utilize three sources 34 of tax revenue to undertake construction and financing of an 35 -17- LSB 5106XS (13) 85 md/sc 17/ 18
S.F. 2052 improvement. First, the county may elect to receive each year, 1 for a period not to exceed 20 years following initial creation 2 of the district, a specified amount of utility replacement 3 taxes collected under Code chapter 437A. The utility 4 replacement tax revenue is required to be deposited in either 5 the district’s capital improvement fund or the district’s 6 debt service fund. Second, the county may impose a capital 7 improvement tax levy for the purpose of accumulating moneys 8 for the financing or payment of a part or all of the costs of 9 any improvement. Third, the county may impose a debt service 10 levy in the amount necessary to pay interest as it becomes due 11 and the amount necessary to pay, or to create a sinking fund 12 to pay, the principal at maturity of all county improvement 13 district bonds issued by the county. 14 The bill authorizes the county to issue county improvement 15 district bonds at public or private sale payable from the levy 16 of unlimited ad valorem taxes on all the taxable property 17 within the district through the improvement district debt 18 service fund and from replacement tax revenue received and 19 deposited in the improvement district debt service fund. 20 The costs of improvements undertaken by the county in a 21 district may be paid from any of the following sources or a 22 combination thereof: (1) the district’s capital improvement 23 fund; (2) the proceeds of county improvement district 24 bonds; (3) any other funds of the county which are otherwise 25 legally available to pay all or a portion of the costs of an 26 improvement. 27 The bill takes effect upon enactment. 28 -18- LSB 5106XS (13) 85 md/sc 18/ 18